Buy, Sell Or Hold Stock Ideas Based On Technicals For 30% Gains

Motilal Oswal Financial Services has suggested buying the stock of Zomato for an upside of upto 30% on the stock.

Velocity Idea - Zomato

RECOMMENDATION: BUY, Current market price: Rs 51.60, Stop Loss: Rs.44 (15%), Target price: Rs.67 (30%).

Key Triggers according to Motilal Oswal

• Zomato with its large strong footprint across 23 countries, is well placed to benefit from the immense potential in the food delivery industry.
• It's food delivery gross order value (GOV) grew by 23% YoY in Q2FY23 led by healthy ~200% YoY growth in Hyperpure business. Management has guided for EBITDA breakeven for ex- Blinkit business by Q2FY24.
• Management in its recent commentary indicated that the firm is working to enhance its profitability.

Technical View:
The price has surpassed the falling channel on the daily scale with a bullish candle and buying interest is visible at support zone. The momentum indicators have retested the breakout on the daily scale and started a fresh up move.

Disclaimer

The stock has been taken from the brokerage report of Motilal Oswal with a few additions from our end. This is not a buy recommendation from Greynium or the author. Neither the brokerage house, nor Greynium Information Technologies Pvt Ltd, nor the author should be held liable for losses based on this article.